Recovery Loan Scheme

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We can usually obtain finance for most professional practices within 24-48 hours.

What is the Recovery Loan Scheme?

Synergy Professions can assist your business to access the Recovery Loan Scheme (RLS), which launched on 6 April 2021. The RLS supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic.

RLS aims to help businesses affected by Covid-19 and can be used for business purposes, including, managing cashflow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes.

Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme. The Scheme will run until 31 December 2021, subject to review.

RLS features include
  • Up to £10m facility per business: The maximum amount of a facility provided under the scheme is £10m per business (maximum £30m per group). Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.
  • Term length: Term loans and asset finance facilities are available from three months, for up to six years, with overdrafts and invoice finance available from three months, for up to three years.
  • Interest and fees to be paid by the borrower from the outset: Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.
  • Access to multiple Covid-19 schemes: Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under RLS.
  • Personal Guarantees Personal guarantees are not permitted for facilities of £250,000 or less. Above £250,000 the maximum amount that can be covered under RLS is capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. No personal guarantees can be held over Principal Private Residences.
  • Guarantee to the Lender: The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt.
Is my business eligible?
  • Covid-19 impact: The borrower must confirm to the lender that it has been impacted by Covid-19
  • UK-based: The borrower must be carrying out trading activity in the UK
  • Viability test: The lender will consider that the borrower has a viable business proposition but may disregard any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid-19
  • Turnover limit: There is no turnover restriction for businesses accessing the scheme
  • Credit and fraud checks for all applicants: Lenders will be required to undertake credit and fraud checks for all applicants. The checks and approach may vary between lender

Additional information is available from the UK Government at: https://www.gov.uk/guidance/recovery-loan-scheme

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    Recovery Loans Scheme

    Recovery Loan Scheme
    Recovery Loans Scheme launched for Professions Sectors

    The Recovery Loans Scheme (RLS) launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic. The scheme will run until the end of the year.

    RLS aims to help businesses affected by Covid-19 and can be used for business purposes, including, managing cashflow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes.

    Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme. The Scheme will run until 31 December 2021, subject to review.

    RLS features include
    • Up to £10m facility per business: The maximum amount of a facility provided under the scheme is £10m per business (maximum £30m per group). Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.
    • Term length: Term loans and asset finance facilities are available from three months, for up to six years, with overdrafts and invoice finance available from three months, for up to three years.
    • Interest and fees to be paid by the borrower from the outset: Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.
    • Access to multiple Covid-19 schemes: Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under RLS.
    • Personal Guarantees: Personal guarantees are not permitted for facilities of £250,000 or less. Above £250,000 the maximum amount that can be covered under RLS is capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. No personal guarantees can be held over Principal Private Residences.
    • Guarantee to the Lender: The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt.
    Is my business eligible?
    • Covid-19 impact: The borrower must confirm to the lender that it has been impacted by Covid-19
    • UK-based: The borrower must be carrying out trading activity in the UK
    • Viability test: The lender will consider that the borrower has a viable business proposition but may disregard any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid-19
    • Turnover limit: There is no turnover restriction for businesses accessing the scheme
    • Credit and fraud checks for all applicants: Lenders will be required to undertake credit and fraud checks for all applicants. The checks and approach may vary between lenders

    Contact Synergy Professions today on enquiries@synergyprofessions.com or 0333 242 2900 to see how we can support your growth ambitions.

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